The issue may have been oversubscribed. Indiabulls Housing did not immediately reply to an email seeking comment.

Global funds including Aberdeen, Alliance Bernstein, BlackRock, Bluebay and Jupiter bought the Indiabulls bonds, a person with direct knowledge of the matter told ET. The fund houses could not be contacted immediately.

More than 20 leading global investors participated in the issue within two hours of the launch, the person said. The bonds likely yielded in the range of 8.55%-8.75% as of press time. The bonds will mature in three years and one month.

“The borrowing cost is not higher than Indiabulls Housing’s domestic borrowing costs but almost at par,” said a fund manager.

Masala bonds are rupee-denominated borrowings, where, unlike dollar-denominated bonds, the exchange-rate risk is borne by the investor and not the borrower.

“Overseas investors see growth potential in India’s housing sector. This makes things relatively easy for housing finance companies,” said a banker.The government is focusing on affordable homes with a scheme christened Housing for All by 2022.

HDFC collectively raised about Rs 4,500 crore from its masala bonds issued in three tranches over the past two months. Those bonds yielded less than its domestic corporate bonds, a move that benefited the company in terms of borrowing costs.